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Daily Briefing: What does GST 2.0’s two-slab structure mean for you?

In today's edition: Bihar CM Nitish Kumar at Hockey Asia Cup, the Matua community allegiance, a case of missing identity; and more

Top news on September 27, 2025Top news on September 27, 2025

Good morning,

Shampoos, toothpastes, hair oil and soaps have just moved into a cheaper tax bracket. At its marathon 56th meeting, the Goods and Services Tax (GST) Council approved a new two-slab system – 5% and 18% – for these daily-use items. The reforms, which kick in from September 22, also bring in a 40% ‘demerit’ rate on super-luxury, sin, and demerit goods. The move aims to simplify the tax structure, ease working capital hurdles, and streamline refunds and registrations. 

Lower shelf: The GST Council has cut rates on a wide list of everyday items from fruit juices, butter, cheese, condensed milk, pasta and packaged coconut water to soya milk drinks, nuts, hair oil, shampoos and sausages. Ultra-high temperature milk, paneer, pizza bread, khakra, plain chapati and even erasers will now attract no GST. Notably, premiums on life and health insurance are also exempted.

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Upper shelf: Aerated beverages with added sugar have been placed in the highest bracket (40%), alongside tobacco products. Crucially, tobacco products like pan masala, cigarettes and gutkha will continue under the existing GST structure (28%) along with the additional cess, till the government recovers the amount it borrowed during the pandemic years. Besides, small cars and motorcycles up to 350 cc will attract 18% GST.

On that note, let’s get to the rest of today’s edition. 👇

  • TharoorThink launches today
  • Nitish Kumar at Asia Hockey Cup
  • A mistaken identity case; and more

⚡Only in Express

The Indian Express has a new offering — TharoorThink, a weekly column by Congress MP Shashi Tharoor for everything from global and national affairs to books and ideas. In today’s column, he reflects on the ongoing tensions between India and the US. He argues that Washington cannot afford to lose New Delhi at a time when US-China tensions are rising, and outlines how policy choices in both capitals will shape the future of the partnership. Read. 

📰 From the Front Page

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Face of the Game: Bihar Chief Minister Nitish Kumar is part of the Men’s Hockey Asia Cup in Rajgir. His face greets you everywhere: on banners at the gates, on buses that ferry the teams, on a balloon floating over the ground, even on the water tank that towers over the town. Inside the arena, he beams from digital ad-boards and peers over the stands from a giant hoarding. This ubiquity, however, isn’t surprising. After all, Nitish isn’t the first one to tap into hockey as a means of gathering soft power in a poll-bound state.

Pain Points: Urjit Patel, India’s newly-appointed Executive Director at the IMF, has flagged that 55% of India’s exports to the US are hit by tariff measures. What should come next? Patel opines that government support must come quickly for sectors taking the biggest hit, and that India should look beyond relief — for instance, deepening trade with other markets while managing the current fallout. Read his full interview with our colleague, Ravi Dutta Mishra.

Deal: Ahead of Prime Minister Narendra Modi’s proposed visit to Manipur on September 13 – his first since violence broke out in the state in 2023 — the Union Home Ministry is busy finalising the terms for extending the ceasefire agreement with Kuki militant groups. Per sources, this would include the withdrawal of Kuki militant camps from the fringes of the Imphal Valley, a long-standing demand of the Meiteis.

📌 Must Read

Mistaken identity: When railway authorities in Maharashtra acquired 2.29 hectares of farmland belonging to one Keshav Tukaram Shinde in 2018, they not only paid for the land but also deposited Rs 1 crore as interim compensation for a “rare sandalwood tree”. Shinde was allowed to withdraw Rs 50 lakh of this amount. Turns out, the tree was actually a comparatively common timber species valued at a mere Rs 10,981. The Railways is now seeking a refund.

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Mission Merge: The Army, Navy and Air Force have long planned to integrate their command and control to utilise their resources on the battlefield effectively. The ambitious plan would involve the creation of specific “theatre” commands, divided by geographical regions. What is theaterisation? Do the Indian Armed Forces need it? And what are the challenges to the proposed structure? We explain.

Power moves: The Matua community wields significant electoral influence in West Bengal. It’s a political force that both the Trinamool Congress and the BJP court. But amid internal discords and widespread concern about a voter verification drive, a section of Matuas has turned to the Congress. A delegation met the Leader of the Opposition, Rahul Gandhi, in Bihar last week. The development doesn’t sit well with the BJP, which hoped to carve a path to power in Bengal with the help of the Matuas. Read Atri Mitra’s insightful analysis.

⏳ And Finally…

Are you struggling with the new Google Phone app? Answering a call now requires a swipe instead of the earlier up-and-down motion. There’s a separate keypad tab, which isn’t a familiar sight. Well, you’re not alone. Google’s new design update, as part of its larger ‘Material 3 Expressive’ overhaul, sparked memes (and considerable outrage) on the Internet. We leave you with the latest ‘Fresh Take’, where Kavya Vashisht explores why small design changes can feel uncomfortable.

🎧 Before you go, do tune in to the latest ‘3 Things’ podcast episode. Today’s lineup: The Maratha quota stir, K Kavitha’s resignation, and a Kerala farmer’s fight against a planned Lulu shopping mall.

That’s all for today, folks! Until tomorrow,

Sonal Gupta and Malavika Jayadeep

Sonal Gupta is a Deputy Copy Editor on the news desk. She writes feature stories and explainers on a wide range of topics from art and culture to international affairs. She also curates the Morning Expresso, a daily briefing of top stories of the day, which won gold in the ‘best newsletter’ category at the WAN-IFRA South Asian Digital Media Awards 2023. She also edits our newly-launched pop culture section, Fresh Take.   ... Read More

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